In this post we are going to tell you 10 reasons why you must buy silver.
- Silver is a very under-valued asset. Few years back you could buy only fifteen ounces silver with one ounce of gold however now one ounce of gold can get you silver of 72 ounces.
- If you look at the historical trend during the millennia, the silver price should have been $86/oz today however its price in 2015 price was $18/oz.
- Among the rare commodities, silver is the only one that is trading far less than 1980.
- In many different products and also industrial applications you can use silver e.g. digital cameras, mobile phones, iPhones and computers, etc. After oil, silver is the second commodity that is most-consumed, and no substitute is available for silver.
- Mostly silver is used in the solar photovoltaic industry. In countries like, China, they are planning to increase their production capacity of renewable energy.
- Enormous industrial demand for silver is partly the reason for pushing the prices up, that will not reduce as the price goes up, because silver is used in many products in small amounts.
Any strong price rise of silver will not reduce industrial demand. In contrary to gold, silver, once consumed will be destroyed.
- Certain monetary demand is added to its industrial demand. Silver continues to remain a form of actual money for centuries. So, the destruction of purchasing power of currency is helping its return as totally unavoidable element of any stable monetary system.
- With price increase, gold becomes difficult to afford by many. With silver this is actually not the case. Millions of people rather will rush for silver if they witness any destruction of purchasing power of paper currency.
Such global demand was never noticed during the last silver and gold boom of the eighties, potentially, it can be very important.
- To realize the strength of silver one phenomenon should be considered as there are huge short positions in the silver market. As the silver price rises, investors/traders will always cover, that will hasten the price rise.
- Like gold, silver “paper” certificates are also sold without enough silver physically present in reserve for satisfying eventual delivery to various holders of such kind of “paper” certificates.
Such abundant “paper” offer too has contributed in limiting the price increase of silver for years by drawing attention away from actual physical market.